Abercrombie & Fitch Q4 Earnings Call Highlights

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MarketBeat

Wed, March 4, 2026 astatine 10:50 AM CST 8 min read

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Record fiscal 2025 sales: Abercrombie & Fitch reported grounds full‑year nett income of $5.27 cardinal (Q4 $1.67B, +5% YoY) and kept double‑digit operating margins contempt astir $90 cardinal of tariff-related drag, with Hollister driving astir of the maturation portion Abercrombie Brands lagged.
2026 guidance tied to tariffs and APAC review: The institution guided for 3–5% nett income maturation and a 12–12.5% operating borderline for fiscal 2026 but assumes 15% planetary tariffs stay each twelvemonth (about $40M incremental deed astatine the midpoint) and is conducting a strategical reappraisal of its APAC business.
Capital program and near‑term headwinds: Management expects $200–225M successful capex and ~ $450M successful stock repurchases for 2026, portion informing an ERP go‑live positive tariff unit volition measurement connected Q1 (operating borderline ~7%) and thrust first‑quarter EPS of $1.20–$1.30.
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Abercrombie & Fitch (NYSE:ANF) executives said the retailer ended fiscal 2025 with results astatine the precocious extremity of the company’s aboriginal January update, citing broad-based vacation demand, disciplined inventory management, and continued profitability contempt a meaningful tariff headwind. Management besides outlined a fiscal 2026 outlook that assumes further tariffs stay successful effect passim the twelvemonth and flagged a strategical reappraisal of its Asia-Pacific concern to amended returns.

For the 4th fourth of fiscal 2025, Abercrombie & Fitch reported nett income of $1.67 billion, up 5% twelvemonth implicit year. Comparable income roseate 1%, including astir 100 ground points of payment from overseas currency. By region, nett income accrued 5% successful the Americas, 8% successful EMEA, and 9% successful APAC, portion comparable income were up 2% successful the Americas, down 3% successful EMEA, and astir level successful APAC.

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Both brands posted grounds fourth-quarter nett sales. Abercrombie Brands returned to growth, with nett income up 4% twelvemonth implicit year, though comparable income declined 1%. Hollister Brands delivered nett income maturation of 6% with comparable income up 3%, marking what CEO Fran Horowitz described arsenic the brand’s eleventh consecutive 4th of nett income growth.

On profitability, the institution posted an operating borderline of 14.1% and operating income of $236 million, compared with $256 cardinal a twelvemonth earlier. CFO Robert Ball said the year-over-year operating borderline diminution of 210 ground points was “driven primarily” by 360 ground points of tariff expense, partially offset by 140 ground points of freight outgo favorability. Adjusted EBITDA borderline was 16.6% connected adjusted EBITDA of $276 million.

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